Kevin Dembo was six weeks away from graduating with a bachelor's degree from Fountainhead College of Technology when he was told the school would be closing last week.

Many of Fountainhead's students were veterans and paid for college with the Post-9/11 GI Bill, which offers tuition assistance for veterans.

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Students were gathered in the college's auditorium on the night of Oct. 30 for what was supposed to be the start of a new semester, but were instead told the doors would be locked and the college would be closed the next day.

Dembo, 27, had two classes left to complete his degree in network security and forensics. Dembo said he had been hearing rumors about the school possibly closing "for months," but didn't think it would happen so abruptly.

"They kind of blindsided us," Dembo said.

Fountainhead released a statement last Tuesday, saying they would be closing Oct. 31, after 71 years. The college said it could not compete with free tuition offered at other institutions and had to close for financial reasons, according to a news release.

'I'm not completely surprised'

"Initially, it was definitely a little bit of a shock, but I'm not completely surprised," Dembo said. "I was kind of expecting it, but I thought it would be at least another year."

Fountainhead College owner Casey Rackley told students they had only known about the closing date for a week, Dembo said.

Dembo, who used the Post-9/11 GI Bill to help cover tuition, said he had been contacted by his veterans affairs representative, who said Rackley was "working toward figuring out some way to let us finish up our degree."

"I've not heard anything personally from her," Dembo said.

According to the school's website, the estimated cost of attendance for the 2017-2018 academic year was approximately $29,362, including tuition, fees and other educational expenses.

The college's building, located on Tazewell Pike, has been for sale since July of this year. Fountainhead moved into the Tazewell Pike building in 1984, but has been in operation since 1947. Dembo said students were told by Richard Rackley, president and CEO of Fountainhead College, that the building being for sale was "nothing to worry about."

Casey Rackley declined to comment, but quoted the press release in an email.

"The College, formerly known as Tennessee Institute of Electronics, attributes the closure to unfair competition with free college education being offered by the state of Tennessee," the release said.

50 students enrolled, 7 full-time employees

At the time of the university's closing, it had 50 students enrolled along with seven full-time employees and five part-time employees. In 2011, there were 40 full-time employees, according to the release.

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Student Corey Jones said "there was no warning, no anything," before Fountainhead College abruptly announced it would shut down last month.(Photo: Michael Patrick/News Sentinel)

Fountainhead College student Corey Jones was also close to graduation when he learned the school would be closing. Jones, 32, had one semester left toward his bachelor's degree in network security and forensics, and said he had just taken out a $9,000 loan through the GI Bill to finish his degree. Jones said he had expected to graduate in April.

"There was no warning, no anything," Jones said. "Everyone was expecting to be having class that night."

Jones said he works full time in IT and attended Fountainhead College at night, and was able to advance in his current position because of the classes he was taking.

"It throws a wrench in some plans for sure," Jones said.

Students looking to transfer to other colleges

Jones said he worries that transferring may leave him further away from graduation than when he was at Fountainhead. On Monday, Jones said he still did not know where he would be transferring and had not received any more information from Fountainhead College.

"I found a school that worked for me, that allowed me to work full time and go to school full time," Jones said. "It may be over a year now before I actually get done with school."

Jones and Dembo said Fountainhead College students had been told they could potentially transfer to Virginia College or Western Governors University. Pellissippi State Community College also released a statement last week, saying it welcomed students who had been displaced to look at their programs.

Many students transferred from ITT Technical Institute after it closed, and were now having to transfer again, according to Dembo.

"I think the way they handled the situation was pretty horrible, actually," Jones said. "I don't think they were telling the truth when they said they only knew for a week. They should have been straight with us from the beginning."